CLEVELAND, Ohio - Despite an uncertain economy and increasing nervousness from
business customers, Ohio's three largest banks on Thursday were full of good
news.

KeyCorp said revenues were
up 8 percent, lending increased by 2.5 percent and its profit margin increased.

Fifth Third Bank's loan
losses dropped to the lowest level in five years, hitting $156 million,
down from $181 million in the second quarter and $262 million a year ago. The
last time they were this low was the third quarter of 2007.

Huntington Bank earned record profits, with a 17
percent jump compared with 2011.
Overall, the results were positive as all three banks reported another quarter
of profits and more progress toward stabilizing delinquent loans.

Key, which has 5,500 employees in
Greater Cleveland, was the brightest spot, with the huge jump in revenues and
profit margin.

"We did something this quarter that the market has been waiting for,"
Chairman and CEO Beth Mooney said in an interview. She added that the bank's
growth "is bucking the trend of the industry."
Investors were pleased as they pushed up the price of Key stock by more than 6
percent in the first 90 minutes of trading Thursday. Shares closed up 4.4
percent, at $8.94.

Banking analyst Gerard Cassidy of
RBC Capital Markets said investors were in love with Key's improving net
interest margin, essentially a profit margin. "It's going to help them maintain
their profitability in 2013," said Cassidy, who is based in Maine.

Cassidy noted that Key has so much
extra capital right now that it's expected to increase the dividend or buy back
more shares next year. Either would help shareholders.

"When you think of where this
company was three years ago, it's turned around remarkably well," he said.
For the quarter, the Cleveland bank's profits were $214 million, or 23 cents
per share, a decline of 7 percent compared with a year ago. Profits were hit by
some regulatory and other expenses.

Revenue jumped by 8 percent to $1.1 billion. Lending increased by 2.5 percent
to $1.2 billion compared with the second quarter. That was led by commercial,
financial and agricultural loans, which increased by $867 million, and home
equity loans, which increased by $350 million thanks to Key's home equity loan
campaign to existing customers.

It was Key's fourth straight quarter
of loan growth.

Mooney said Key has been able to
increase home equity lending because home values have started rising and
consumers aren't as fearful about borrowing as they were a few months ago.

In addition to the loan and revenue
growth, Mooney said it's significant that Key re-entered the credit card
business and acquired 37 branches of HSBC in New York. The results demonstrate
the bank's long-term efforts to increase revenue and decrease costs, she said.

The bank expects to cut overall expenses by up to $50 million by year-end and
by $150 million to $200 million by December 2013. It plans to close up to 5
percent of its 1,062 branches, or about 50 branches, and plans to cut an
undisclosed number of jobs companywide.

Mooney said today Key has been trimming some jobs, primarily to reduce
redundancy and increase efficiency. Mooney said Key has "no big
announcement" in the near term about any significant layoffs. Key employs 15,833, which is
essentially flat when you add in the 350 employees from the New York
acquisition.

Of the first wave of 19 branches
closing by year-end, none are in Greater Cleveland, and this area isn't
expected to be affected significantly by branch closings. And at the same time
as branches with much growth potential close, Key will continue to open new
branches.

Many banks are making similar cost-cutting moves as they face the likelihood of
years of modest loan growth, low interest rate margins and mounting, costly
government regulations.

At Huntington, profits
hit a record of $168 million, or 19 cents per share, up from $143 million in the third quarter of 2011. The
Columbus-based bank has 11,730 employees.

Dan Walsh, president of Huntington's
Greater Cleveland region, the bank is seeing a payoff from its plan launched in
2009. "It's working," he said. "We're really delivering on our promises."

Walsh said the bank has added more
than 250,000 consumer households, a 27 percent increase, and 26,000 commercial
customers, a 21 percent increase, since the first quarter of 2010.
In addition to gaining new customers, it is increasing business with existing
ones, with 76 percent of consumer checking account households and 33 percent of
commercial customers now with four or more bank products or services.
But its profitability took a hit as its margin dropped to 3.38, from 3.42.
Cassidy said that's why Huntington's stock got socked, dropping by more than 6
percent.

Huntington is still rolling out its
effort to build more than 180 in-store branches. The in-store branches are
expected to add to profits next year.

Fifth Third, meanwhile, with 21,000 employees, said
quarterly profits dropped by 5 percent as loans increased but the bank's
profit margin shrunk from a year ago.

Profits were $354 million, or 38 cents per share, down from $373
million, or 40 per share, in the third quarter of 2011. Meanwhile, the
bank's profit margin dropped to 3.56 percent, down 2 percent from a year ago
and identical to the second quarter.

The Cincinnati-based bank, however, did raise its dividend this quarter to 10
cents per share, up from 8 cents, and has launched a $350 million stock
repurchase plan. Both moves will help shareholders.

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